What is an Enterprise Zone? Is a defined area in which businesses can claim certain state income tax savings and other advantages. These zones were created in California to stimulate business investments in areas where investment has decreased and to make jobs available in areas of high unemployment.
Enterprise Zone Businesses may reduce taxes by the amount of sales or use tax paid on certain property purchased for exclusive use in an enterprise zone. Qualified property is machinery, machinery parts, data processing and communication equipment, (phones, computers, fax machines, copy machines, etc.)